Canada's Trudeau insists arrest of Huawei CFO not 'political'

Asian markets tumble, China tech hit after Huawei arrest

Canada arrests Huawei CFO, to extradite her to US

He said neither Canada or the US had so far responded to China's concerns.

The Embassy of the People's Republic of China in Canada said that it resolutely opposes Meng's arrest and demands her immediate release.

Meng is scheduled to appear in court on Friday for a bail hearing.

Meng was arrested in connection with alleged violations of Iran sanctions, an issue that had previously become entangled in US-China trade talks when the Trump administration slapped harsh penalties on Chinese telecoms giant ZTE. But the Wall Street Journal reported in April that USA authorities were investigating whether Huawei violated sanctions on Iran, leading the Chinese government to appeal to Washington to avoid any steps that might have damaged business confidence. "China tension around geopolitics and techno-nationalism", he said of Meng's arrest.

Beijing asked Washington and Ottawa to explain the reason for Meng's arrest, said a Foreign Ministry spokesman, Geng Shuang.

New Zealand and Australia have stopped telecom operators using Huawei's equipment in new 5G networks because they are concerned about possible Chinese government involvement in their communications infrastructure.

"China has the means, opportunity, and motive to use telecommunications companies for malicious purposes", a government report said. Earlier this year, the U.S. Commerce Department said ZTE violated the settlement and barred it from buying any U.S. components - a move that all but halted many ZTE operations.

Long viewed by USA intelligence agencies as a national security threat, Huawei is one of China's most prominent tech companies.

China, Russia and Saudi Arabia are among the countries with no USA extradition treaties.

FILE - U.S. President Donald Trump's National Security Adviser John Bolton waits for the begenning of talks with Russian President Vladimir Putin in the Kremlin in Moscow, Russia, June 27, 2018.

Meng was changing flights in Canada when she was detained "on behalf of the United States of America" to face "unspecified charges" in New York, Huawei said in a statement.

BT excludes Huawei from 5G network, to remove 4G equipment
Huawei's "enhanced packet core" technology is still at the core of EE's 4G network today. BT is removing kit made by Chinese firm Huawei from its network amid fears of spying.

USA stock futures and Asian shares tumbled as news of the arrest heightened the sense a major collision was brewing between the world's two largest economic powers, not just over tariffs but also over technological hegemony.

David Buik, from trading site Core Spreads, said: 'The arrest of Meng, who's also the daughter of Huawei's founder, has rocked Asia-Pacific markets and triggered fresh jitters in Europe and the US.

Hu Xijin, editor-in-chief of the Global Times (one of China's most hawkish state-run newspapers), commented on his Twitter account that "The U.S. can't beat Huawei in the market".

In a statement, it said it had complied with "all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, US and EU". Markets are already incredibly nervous over slowing economic growth thanks to the inverted United States yield curve.

The arrest is nearly certain to exacerbate tensions between President Donald Trump and President Xi Jinping at a highly sensitive time.

But Mr. Simon said it was possible the Justice Department consulted the White House on timing, given the political concerns or sensitivities. -Chinese cease-fire in a tariff war over Beijing's technology policy.

Huawei is not listed, but China's second-largest telecom equipment maker, ZTE Corp, sank almost 6 percent in Hong Kong while most of the nearby national bourses lost at least 2 percent.

Gordon Houlden, director of the China Institute at the University of Alberta, said Canada and the US have an extradition treaty and Canada has obligations that not even the prime minister can change.

The charges remain unknown due to a court restriction but the United States has been investigating Huawei over possible violation of Iran sanctions.

Chinese officials on Thursday blasted Meng's arrest - but experts warn more forceful actions, including the possibility of tit-for-tat detentions of high-profile citizens, could be coming.

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